11:02 AM EDT, 08/15/2025 (MT Newswires) -- RBC Capital Markets on Thursday recapped the earnings results of North American base metals equities in the second quarter, and said it is looking for a stronger second half.

RBC said the companies in its coverage universe are about 46% through their annual production range, which suggests production growth in subsequent quarters to meet guidance, while Q2 costs tracked near 6% below the midpoint of guidance (excl. HBM). This, the bank added, largely offset Q1 where costs tracked close to 5% above the midpoint of guidance. Q2 results were helped by stronger metal prices, with average copper up 2% and gold up 15% over the quarter, leading to about 77% of covered copper producers beating EBITDA estimates, the bank noted.

In its recap for Q2, RBC noted Teck Resources (TECK-B.TO, TECK-A.TO) lowered 2025 production guidance for the QB operation due to shutdowns required to catch up on the tailings dam construction which also requires $340M of additional capex, plus $350M more to extend HVC (now $2.1-2.4B). RBC said questions remain around QB's ability to reach 300kt/year and 2026 guidance which was unchanged. Although arguably the shares are pricing in a downside case at 4.5x 2026 EBITDA vs. large cap peers at 6.6x, the bank said.

First Quantum (FM.TO) announced a $1.0 billion gold stream at the Kansanshi mine at competitive terms, while the S3 mine expansion is nearly complete and can drive increased FCF while they continue to work towards a potential resolution in Panama which has gone quiet in recent weeks., according to RBC.

Meanwhile, RBC noted Ivanhoe (IVN.TO) plans to update its 2026 and 2027 production guidance in September to provide a sense of how close they can get to the original 650kt/year target at Kamoa-Kakula after modifying the mining method following May's "seismic event".

RBC noted Lundin Mining ( LUNMF ) 's shares rallied on a solid operating quarter and earnings beat on strong metals price, while Capstone Copper ( CSCCF ) 's production continues to "tick higher" and they maintained full year guidance as further growth at Mantoverde in the second half, and outperformance at Mantos Blancos, is offsetting inconsistency at Pinto Valley.

Hudbay (HBM.TO), the bank noted, reported an eighth straight quarter of strong free cash flow and announced a joint venture deal with Mitsubishi at Copper World. Also, Champion Iron ( CIAFF ) reported stronger sales on improving rail performance, offset by weaker production, and Warrior increased 2025 coal sales guidance as Blue Creek is ahead of schedule.

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